The Defence Research and Development Organisation (DRDO) has undertaken a significant strategic shift in its approach to research and development, aligning with the evolving nature of modern warfare and the necessity to address emerging and hybrid threats.

During the fiscal year 2024-25, DRDO received a budget allocation of ₹23,855.61 crore, representing 5.25% of India’s total defence budget.

This allocation supports both the organisation’s internal development and a refocused partnership model with the domestic industry, aiming to make India more self-reliant in defence technology.

This year, DRDO has resolutely prioritised eight niche, deep technology areas for intensified research and development:

Artificial Intelligence
Cognitive Technology
Quantum Technology
Neuromorphic Computing
Military Cyber Technology
Advanced Materials
Compound Semiconductors
Intelligence, Surveillance and Reconnaissance (ISR) Technologies

These domains are recognised as fundamental for the future of defence systems and are areas where the private sector typically does not invest due to high costs and technological risks. By focusing on these fields, DRDO aims to retain and strengthen its edge in critical technologies, particularly those that underpin both current and next-generation warfare platforms.

To enable this focused approach, DRDO has identified 183 military systems for exclusive development by private industry, reducing developmental costs and allowing DRDO’s in-house resources to be dedicated to more complex and high-risk research. This industry-led model is facilitated through new mechanisms such as:

Technology Development Fund (TDF):

This flagship scheme provides up to 90% funding (capped at ₹50 crore per project) to MSMEs, start-ups, public, and private companies to develop advanced technologies with potential defence applications. TDF projects often involve collaborations with academia but limit academic spending to 40% of total project cost. Since inception, the scheme has funded over 70 projects and led to the realisation of 16 new defence technologies.

Development-Cum-Production Partner (DcPP):

DcPP integrates private sector involvement from the initial phases of complex defence projects, ensuring smooth transition from development to production. This model has succeeded in projects such as the Vertical Launch Short Range Surface-to-Air Missile (VL-SRSAM) and the Advanced Towed Artillery Gun System (ATAGS). The approach ensures that industry is equipped to absorb, produce, and support mission-critical technologies long term.

DRDO-Industry-Academia Centres of Excellence (DIA-CoE):

DRDO has established 15 Centres of Excellence at top academic institutes, facilitating multidisciplinary and multi-institutional collaboration among DRDO labs, academia, start-ups, and industry specialists. These centres drive innovation in futuristic domains, such as quantum communication, brain-machine interfaces, terahertz technologies, and advanced photonics. A recent realignment has expanded research to 82 verticals, including emerging challenges like cryptography, compound semiconductors, and new RF technologies.

The overall strategy encourages stronger industry participation, particularly among MSMEs and start-ups, while reserving high-risk, cutting-edge domains for DRDO’s internal focus. This reshaping is expected to reduce redundancy, promote resource optimisation, and drive India’s technological self-reliance in defence manufacturing.

The Standing Committee on Defence has recognised the transformative impact of dual-use, kinetic, and non-kinetic threats in contemporary combat. It has urged DRDO to further explore pioneering areas of research, not merely to counter adversaries’ advancements but to proactively prepare India’s armed forces for a rapidly changing threat landscape.

The Committee also acknowledged the need for reasonable flexibility in budgetary allocation, recommending supplemental funding if required mid-year to ensure uninterrupted R&D momentum.

DRDO’s 2024-25 thrust on niche technologies, greater industry-academia collaborations, and targeted funding mechanisms marks a pivotal step towards maintaining national security and technological superiority amid fast-expanding global and hybrid threat environments.

Based On Tribune News Service Report